India's Strategic Push in Rare Earth Magnet Manufacturing

The Indian government has approved a Rs 7,280 crore scheme to boost the manufacturing of sintered rare earth permanent magnets. The initiative aims for a capacity of 6,000 MTPA, targeting industries like electric vehicles and aerospace. The scheme spans seven years, supporting five beneficiaries through competitive bidding.

The Indian government took a strategic step on Wednesday by approving a robust scheme to enhance the manufacturing capability of rare earth permanent magnets, crucial to multiple high-tech industries. The plan involves a substantial investment of Rs 7,280 crore over a seven-year period.

Prime Minister Narendra Modi chaired a Cabinet meeting where the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' was sanctioned. Information and Broadcasting Minister Ashwini Vaishnaw highlighted its critical role in establishing a 6,000 MTPA production capacity, fulfilling needs in sectors like electric vehicles and aerospace.

The scheme envisions licensing five beneficiaries through a global competitive process, with a maximum of 1,200 MTPA capacity each. This includes a two-year gestation period for setting up facilities and a five-year window for incentive-based sales, signaling a sustainable push in the magnets sector.

(With inputs from agencies.)